The British pound broke higher during the trading session on Friday, as we broke well above the 1.30 level. At this point it looks as if the British pound is going to continue to find buyers going forward, as the market has found quite a bit of support at the 50 day EMA. Ultimately though, I think it will be very noisy and choppy, but it has more of an upward slope to it longer term. The bullish flag of course has offered support as I anticipated, and the bullish flag suggests that we will get a move to the 1.38 handle. That being said though, I am going to look at pullbacks as a buying opportunity.
GBP/USD Video 30.12.19
To the upside, I believe that the 1.3250 level will be resistive, and most certainly the 1.35 level will be. We have recently bounce from the 38.2% Fibonacci retracement level, and that of course will attract a certain amount of attention in and of itself. The fact that we only pull back to the 38.2% Fibonacci retracement level suggests that there is a lot of bullish pressure underneath and that the momentum will continue to be very strong. At this point in time though, I do believe that looking for value in the British pound will be the way to go going forward. Buying the dips continues to be how I plan on testing this market, and I believe that the 1.30 level will attract a lot of attention but I would be more willing to simply by little bits and pieces on pullbacks to build up a larger position than anything else.
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This article was originally posted on FX Empire
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